New EAPA Investigations Underway Into Importers of Stainless Steel Flanges, Aluminum Door Thresholds
CBP is looking into the possible antidumping and countervailing duty evasion by importers of stainless steel flanges and aluminum door thresholds from China, the agency said in recent notices of action announcing the investigations. The stainless steel investigation is focused on Prime Stainless Products and H&H Machine, CBP's Trade Remedy Law Enforcement Directorate said in the Dec. 6 notice, which CBP hasn't posted online yet. CBP is consolidating its investigations into the two companies, it said.
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Core Pipe Products, which is represented by Wiley Rein lawyer Daniel Pickard, set off the investigation through two allegations filed in August, CBP said. Core said H&H and Prime used a transshipment scheme through an intermediary supplier in the Philippines, EN Corporation (ENC), to avoid AD order A-570-064 and CVD order C-570-065. "Core Pipe provided reasonably available documents and other information to support its arguments regarding the likelihood of transshipment and/or attempt to evade detection through misrepresentation of the true country of origin," CBP said. The agency subsequently issued Customs Form 28s requesting information on sale, production and factory documentation, it said.
H&H didn't respond and Prime's response didn't include any production or factory information. "The lack of response by H&H and the deficient response by Prime Stainless precluded CBP from corroborating the country of origin of the merchandise" in the entries being reviewed, CBP said. CBP also visited the factory in the Philippines and noted Chinese-origin flanges lacking country of origin markings, it said. Also, an ENC employee gave a statement "conceding shipments of Chinese flanges to the United States after cash deposits were owed and the Prior Disclosure by the U.S. importer regarding the importation of such Chinese-origin flanges," which "provides evidence of the type of transshipment scheme outlined in the Allegation."
CBP's investigation into aluminum door thresholds is focused on Worldwide Door Components and the possible evasion of AD/CVD orders A-570-967 and C-570-968 on aluminum extrusions from China, the agency said in the Nov. 16 notice. The underlying allegation was filed by Endura Products, which is represented by Robert DeFrancesco, also of Wiley Rein. Among other evidence, Endura submitted an affidavit that Worldwide's CEO, Jerry Monts de Oca, told an Endura representative the company is "selling a 'finished good' and therefore, the thresholds are not subject to the orders and therefore Worldwide is paying 'zero' tariffs," CBP said.
Endura also pointed to underpriced products offered by the company and shipping data that shows exports from China sent to Worldwide. "CBP data corroborates Endura’s public-source research indicating that Worldwide entered such merchandise without paying the requisite AD and CVD duty deposits upon entry," the agency said. In both the stainless steel flange and the door threshold investigations, CBP said it will implement interim measures, including rate adjustments and suspended liquidations for unliquidated entries under investigation.
Email ITTNews@warren-news.com for a copy of the notice on the stainless steel flanges investigation.